Just like gasoline, propane is sold by the gallon, and this cost per gallon changes throughout the year. There are several reasons why the cost of your propane is higher at some times than others. Unlike gasoline, propane prices can fluctuate a bit more dramatically, and there are definitely opportunities to save a great deal of money off your yearly propane costs.
It first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will increase.
Another thing that affects the cost of propane is supply and demand. Propane is produced throughout the year, but the demand for this resource is much higher during the winter when it is colder out and people need to heat their homes. Historically, prices are always considerably higher in months such as January and February then they would be in July or August. A particularly harsh winter can increase the demand substantially, reduce the supply and drive up propane costs. Likewise, if snowstorms prevent propane trucks from bringing propane from Texas or Kansas, this also can increase the cost of your propane.
This is why customers should try to pre-purchase as much propane as possible when the prices are historically low, such as during the summer. You can cut your yearly propane costs in half by purchasing when the supply is high and the demand is low. Buy in July and you will be much happier when prices are double in January.
For those who need an Indiana propane company or Ohio propane company, Thrifty Propane delivers throughout these two states, as well as Delaware, Kentucky, Pennsylvania, Michigan, West Virginia and New Jersey. If you need Medina propane, Columbus propane, Indianapolis propane or need delivery to another town or city, Thrifty Propane sells only the best quality propane, which is HD-5 propane.
It first helps to understand how propane is produced. This gas is actually a by-product of refining petroleum or natural gas. The highest quality propane, HD-5 propane, typically comes from Texas where it is stored in gigantic salt caverns. It can be shipped around the country by pipeline or by truck. More than 90% of the propane sold in the United States is produced domestically.
Since it is a by-product of two other resources, the cost of these resources affects the cost of propane. So if petroleum costs go up, so does the price of propane. If there is a shortage of natural gas and the price goes up, the price for your propane also will increase.
Another thing that affects the cost of propane is supply and demand. Propane is produced throughout the year, but the demand for this resource is much higher during the winter when it is colder out and people need to heat their homes. Historically, prices are always considerably higher in months such as January and February then they would be in July or August. A particularly harsh winter can increase the demand substantially, reduce the supply and drive up propane costs. Likewise, if snowstorms prevent propane trucks from bringing propane from Texas or Kansas, this also can increase the cost of your propane.
This is why customers should try to pre-purchase as much propane as possible when the prices are historically low, such as during the summer. You can cut your yearly propane costs in half by purchasing when the supply is high and the demand is low. Buy in July and you will be much happier when prices are double in January.
For those who need an Indiana propane company or Ohio propane company, Thrifty Propane delivers throughout these two states, as well as Delaware, Kentucky, Pennsylvania, Michigan, West Virginia and New Jersey. If you need Medina propane, Columbus propane, Indianapolis propane or need delivery to another town or city, Thrifty Propane sells only the best quality propane, which is HD-5 propane.
About the Author:
Cath Buhr loves writing reviews on propane retailers. For additional details about Cincinnati propane retailers or to know local Baltimore propane prices, please visit the Thrifty Propane website today.
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